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Consider an economy with $12 billion in base money and a multiplier of 3. The money supply is currently $12 billion x3-$36 billion. Now let's say that the amount of base money increases by 50 percent, to $18 billion. How must the multiplier change for the money supply to remain unaffected by this change in base money? Instructions: Round your answer to two decimal places. The multiplier must change to:

Consider an economy with $12 billion in base money and a multiplier of 3. The money supply is currently $12 billion x3-$36 billion. Now let's say that the amount of base money increases by 50 percent, to $18 billion. How must the multiplier change for the money supply to remain unaffected by this change in base money? Instructions: Round your answer to two decimal places. The multiplier must change to:

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Consider an economy with $12 billion in base money and a multiplier of 3. The money supply is currently $12 billion x3 = $36 billion. Now let's say that the amount of base money increases by 50 percent, to $18 billion. How must the multiplier change for the money supply to remain unaffected by this change in base money? Instructions: Round your answer to two decimal places. The multiplier must change to:
Transcribed Image Text:Consider an economy with $12 billion in base money and a multiplier of 3. The money supply is currently $12 billion x3 = $36 billion. Now let's say that the amount of base money increases by 50 percent, to $18 billion. How must the multiplier change for the money supply to remain unaffected by this change in base money? Instructions: Round your answer to two decimal places. The multiplier must change to:
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